Spawning in the sky when the game starts despite having spawn pads

Those settings are good, the priority group should have sorted out the issue,

Yeah, the Barrier Device would be a problem if the spawnpads are inside it and its solid,
they would be OK if they are inside a hollow box mesh, or inside a bunch of barrier walls.

The other causes I know of for skyspawning are spawnpad team/class settings not matching the player,
and not enough spawnpads, 1 pregame and 1 game per player.